Use the Internet to research at least two financial rating agencies that publish financial research and analysis on stocks and bonds, such as Standard and Poor's, Mood’s, and Fitch. Be prepared to discuss.

DQ#1 from the e-activity, evaluate at least two companies' financial statements that have received a negative rating from one of the financial ratings agencies. Determine which financial ratios most likely impacted the rating decision. Compare and contrast at least two financial ratios that support the rating agency's claims. Speculate on how the ratios are likely to change considering the economic environment in which it operates. Support your position.

DQ#2 there are three major Financial Ratings Agencies. Why is there a need for all three? Are the factors used to assess a company's rating the same for each of the three ratings agencies?

DQ#3 Imagine that you are a chief financial officer with $150,000 of idle cash that you must invest to increase earnings for your company. Select at least two companies and the ratios you would use to determine your investment strategy. Based on the companies you choose, speculate on how the ratios are likely to change over the next five years.

DQ#4 How objective is a given rating? If a company's rating is changed, what could be the implications? Are ratings a strong predictor of possible bankruptcy?

Answer rating: 100% (QA)

Negative Rating to Two Companies Rating provided by the rating agencies were to indicate the financial strength of the company and their performance over the period Rating agencies take into considera... View the full answer